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The objective of this workshop is to provide participants with an understanding of the Discounted Cash Flow (DCF) model that is used by developers to incorporate the time value of money concept into a feasibility analysis. Building on the fundamentals introduced in Pro Forma Basics for Planners, this session relies on the DCF to examine the performance of a purpose-built rental development that is owned and operated on a long-term basis. This technique is relevant for private and not-for-profit projects. In addition to residential properties, familiarity with the DCF provides the basis for measuring the performance of other commercial uses (office, retail, and industrial). Key DCF components including the discount rate, capitalization rate, and loan amortization are clearly explained to highlight the assumptions and calculations shaping a DCF analysis. The Internal Rate of Return (IRR) is reviewed to provide insights into the profit-based metric that is commonly used to evaluate DCF outcomes. The session concludes with a hands-on case study based on the multi-period pro forma spreadsheet model presented in the workshop.

Practitioners seeking an in-depth understanding of pro formas will find this session useful. Additionally, individuals involved with purpose-built rental developments will benefit from the perspective incorporated into the DCF model.

Key Takeaways

• Gaining the confidence to discuss a Discounted Cash Flow pro forma with real estate professionals
• An awareness of Discounted Cash Flow analysis assumptions and calculations
• Recognizing the impacts of cost and revenue timing on development performance
• Understanding purpose-built rental development economics

Facilitator(s):

Steven Webber, PhD, RPP, MCIP is the Founder and Principal of Urban Formation, a consulting practice focusing on land economics, development feasibility analysis and affordable housing initiatives. While a faculty member in the School of Urban and Regional Planning at Toronto Metropolitan University, Steven created a development feasibility course that introduced students to pro forma fundamentals. Steven earned a master’s in urban planning from the University of California, Los Angeles, and a doctorate in urban planning from the University of Southern California.

Fees: 

OPPI Member: $300 + HST

Non-Member: $350 + HST

OPPI Student Member/Retired Member: $255 + HST

Please check your email (including spam folders) for any additional resources. When registering, we suggest clicking on the option to add this event to your calendar for convenient access to the date and time of the workshop.

If you have any questions, please contact events@ontarioplanners.ca.

CANCELLATION POLICY FOR OPPI EVENTS

• Full refund: requires a minimum of one month's notice
• 75% refund: requires 2-4 weeks' notice
• No refund: if less that 2 weeks' notice